KUALA LUMPUR, JULY 22 — The government estimates that RON95 petrol subsidies will reach around RM2 billion per month and diesel subsidies around RM1.5 billion per month if crude oil prices remain at around US$90 per barrel based on current projections.
Deputy Finance Minister Liew Chin Tong said that so far the country’s fiscal position remains strong and the fiscal projection has not changed, despite the increase in crude oil prices.
“The government also earns revenue from petroleum, every increase in oil prices of US$1 per barrel is expected to generate additional revenue of approximately RM300 million.”
“In October, when Prime Minister Datuk Seri Anwar Ibrahim presents the 2027 Budget, the government will announce the latest fiscal projections based on the current situation at that time,” he said during a question and answer session at the Dewan Negara today.
He said this in response to a supplementary question from Senator Datuk Mohd Na’im Mokhtar who wanted to know whether the government was still confident that the fiscal deficit target could be maintained if world crude oil prices increased beyond projections, as well as the contingency plan prepared to deal with the situation.
In response to a supplementary question from Senator Datuk Anna Bell @ Suzieana Perian regarding the proposal to increase the BUDI Diesel quota limit for Sabah and Sarawak, Liew said the government was willing to consider applications for certain groups.
“For example, pick-up vehicle users have been allocated an additional quota of 100 litres through a very simple application. If there are specific cases that need to be considered, the government is willing to look into them,” he said.
— BERNAMA
